*
TSX ends down 3.85 points at 20,680.83
*
Energy falls 0.8%; oil settles 2.1% lower
*
Materials sector loses 1.2%
*
Canadian housing starts fall 11% in March
(Adds investor quotes and details on activity)
By Fergal Smith
April 19 (Reuters) - Canada's main stock index ended its
recent winning streak on Wednesday as lower commodity prices
weighed on resource shares, but the index clawed back much of
its earlier decline in a positive sign for the market's outlook.
The Toronto Stock Exchange's S&P/TSX composite index ended down 3.85 points at 20,680.83, after eight
straight days of gains. On Tuesday, it notched its highest
closing level in two months.
"We've seen some buying coming in any time the market has
dipped a little bit. I think that's an encouraging note," said
Elvis Picardo, a portfolio manager at Luft Financial, iA Private
Wealth.
The energy sector dropped 0.8% as the price of oil
settled 2.1% lower at $79.16 a barrel, pressured by potential
U.S. interest rate hikes that could slow growth and curb oil
consumption.
The materials sector , which includes precious and
base metals miners, was also down, falling 1.2%, as gold and
copper prices declined.
Helping to cap the TSX's decline were gains for the
industrials and heavily weighted financials sectors. They
advanced 0.6% and 0.4% respectively.
"We are on the cusp of earnings season here. That might be a
big driver of markets over the next few weeks," Picardo said.
"Overall, the bar has been lowered for earnings both in Canada and the U.S. It remains to be seen if companies can surpass that lowered bar."
Meanwhile, Glencore said it is willing to improve its $22.5 billion takeover offer for Teck Resources Ltd , raising pressure on the Canadian miner to ditch a restructuring plan and sit down at the negotiating table. Shares of Teck Resources ended 0.7% higher. Domestic data showed housing starts falling 11% in March, contributing to a slower trend in recent months that follows a rapid increase in borrowing costs. (Reporting by Fergal Smith; Additional reporting by Shristi Achar A in Bengaluru; Editing by Shailesh Kuber and Jonathan Oatis)
